A weak euro doesn’t necessarily mean stronger Q3, Q4 earnings


Mr Vigil gives the example of Germany, a role model of exportation, and its sluggish last PMI data. Despite the euro’s depreciation, there is no sign that orders are increasing.

Also, if we check the relationship between DAX performance (white line) and the PMI, it seems pretty high, although it’s obviously not the best comparison since we are considering an index which can represent (or not) the entirety of the country’s economic activity. However, it can give us a hint of what is happening.


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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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